In its annual FDCPA report to Congress released on March 20, 2014, the CFPB stated that the industry continues to be plagued by aggressive collection tactics and inaccurate record-keeping. According to the Bureau, since it began receiving consumer complaints about the industry in July, it has received more than 30,000 complaints concerning debt collection practices.
Seventh Circuit Finds Collectors Settlement Letters “Misleading”
On March 11, 2014, the Seventh Circuit ruled that settlement letters sent to debtors concerning the settlement of time-barred debt were misleading even though the letters did not threaten litigation.
The plaintiffs were both Illinois residents with outstanding debt that was subject to the state’s four-year statutes of limitations, and the collection firms named in
CFBP to Begin Conducting Surveys on Consumer Experiences with Debt Collection Industry
As a part of its plans to modernize regulation of the debt collection industry, the CFPB announced on February 26, 2014, that it will begin the process of soliciting consumer input to “learn about their experiences interacting with the debt collection industry” – specifically their most recent contact with debt collectors and whether they recognized
State Attorneys General Urge “Consumer-Centric” Debt Collection Rules
The State Attorneys General from 30 states and the District of Columbia submitted a comment letter to the CFPB on February 28, 2014, urging the CFPB to “adopt well-tailored, comprehensive, and balanced rules” that will apply to “all persons engaged in the collection of consumer debts” which would presumably include both first and third-party collectors.
The ACA Responds to the CFPB’s Announced Notice of Proposed Rulemaking
The ACA issued its response to the CFPB’s Announced Notice of Proposed Rulemaking. In its comment letter, the ACA suggested a number of considerations that it believes should guide CFPB’s development of new regulations designed to modernize the FDCPA:
- Any new rules should recognize the industry’s diversity, namely the types of debt being collected and
Industry Groups Urge CFPB to Establish Debt Collection Rulemaking Priorities
A recent comment letter from the American Bankers Association, Consumer Bankers Association and the Financial Services Roundtable to the CFPB urged the Bureau to prioritize third-party agencies in its FDCPA rulemakings.
Chief among the group’s concerns is maintaining “the distinction between first and third-party collections recognized by the FDCPA.” The signatories “strongly oppose placing FDCPA-like
New Jersey State Appellate Court Clarifies Burden of Proof for Establishing Ownership of Accounts Subject to Collections
On March 5, 2014, the Appellate Division for the Superior Court of New Jersey issued a 46-page consolidated opinion clarifying the type of documentation necessary to demonstrate ownership of an account for collections purposes.
In establishing ownership of an account, the opinion affirmed the sufficiency of electronic business records or data files as adequate proof
FTC Highlights 2013 Enforcement Actions, Pledges Vigorous Enforcement Going Forward
As part of the CFPB’s annual report to Congress on the federal government’s efforts to implement the FDCPA, the FTC submitted highlights from its 2013 enforcement actions signaling that the Commission will continue to play an active role in enforcing the FDCPA in collaboration with the CFPB and state attorneys general.
The FTC noted that
9th Annual Credit and Collection News Conference
Troutman Sanders’ lawyer, Ashley Taylor, spoke at the 9th Annual Credit and Collection News Conference in Naples, FL about the newly formed Collection Agency Coalition. The Coalition is designed to address frivolous lawsuits brought against the industry from attorney mills. CCN’s 9th annual Credit and Collection News Conference will be held April 2-4, 2014 at
Recent FTC Report and CFPB Bulletin Highlight Importance of Investigating Identity Theft Claims
A report issued by the Federal Trade Commission (FTC) and a bulletin issued by the Consumer Financial Protection Bureau (CFPB) both highlight the continued federal regulatory interest in endemic identity theft as well as the significant risk to businesses that fail to address complaints related to identity theft.
The FTC’s Report on the Top Categories